Reference no: EM132558450

A manufacturer of industrial equipment has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator Level of Activity                          3,900 MHs

Overhead Costs at the Denominator Activity Level:

Variable Overhead Cost            $33,345

Fixed Overhead Cost                      $61,425

The following data pertain to operations for the most recent period:

Actual Hours                                                   3,900 MHs

Standard Hours Allowed for the Actual Output       3,952 MHs

Actual Total Variable Overhead Cost                      $32,565

Actual Total Fixed Overhead Cost                            $60,675

QUESTIONS:

Problem a. What were the Predetermined OverHead Application Rates [POHAR], each rounded to the nearest cent?

Problem b. Determine the fixed overhead variances

Problem c. How much overhead (in total), was applied to products during the period? Show the breakdown.